2013-1064-Resolution No. 2013-097 Recorded 7/16/2013REVIEW7L���C
LEGAL COUNSEL
DESCHUTES
NANCY BLANKENSHIP,FOS COUNTY CLERKQ70i3.10fi4
COMMISSIONERS' JOURNAL 07/16/2013 08;01;51 AM
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20 —1064
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
A Resolution Declaring Eligible Uses of
the Economic Development Fund, Fund * RESOLUTION NO. 2013-097
105, and Superseding Resolution No. 2010-
038
WHEREAS, on May 18, 2010 the Deschutes County Board of Commissioners ("Board")
adopted Resolution Number 2010-038, A Resolution Establishing Fund 105 as the Economic
Development Fund; and
WHEREAS, the Economic Development fund was created to assist with business
recruitment and retention; and
WHEREAS, Resolution 2010-038 established criteria for eligible uses for the Economic
Development fund; and
WHEREAS, the Board now wishes to expand the use of Fund 105 to include airline
revenue guarantee programs associated with the establishment of commercial passenger airline
service which would connect Central Oregon to a major airline hub to facilitate tourism and
business travel from other states; now therefore,
THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY
HEREBY RESOLVES AS FOLLOWS:
1. Eligible uses of Fund 105, the Economic Development Fund, shall be used only for the
purposes described in Exhibit A, attached hereto and incorporated herein.
2. Resolution 2013-097 supersedes Resolution 2010-038, provided that expenditures made
pursuant to Resolution No. 2010-038 will not be invalidated.
Pagel of 4 Resolution No. 2013-097
3, Monies currently in Fund 105 and other monies that may be transferred to Fund 105 at the
sole discretion of the Deschutes County Budget Committee and the Board shall be used only
for the purposes described in Exhibit A, attached hereto and incorporated herein.
DATED this �day of4, 2013. kjU,4,�
ALAN UNGER, Chair
LKS`
TAMMY BANEY, Vice Chair
ATTEST: ANTHONY DeBONE, Commissioner
Recording Secretary
Page 2 of 4 Resolution No. 2013-097
Fund 105, the Economic Development Fund, shall be used for the exclusive purpose of job -
creating business recruitment, retention and expansion, using the following criteria and
procedures. Fund disbursements may take the form of low-interest loans or forgivable loans,
however, all disbursements shall be tied directly to the creation or retention of jobs in Deschutes
County and only in Deschutes County.
Fund disbursements may also take the form of an airline revenue guarantee program, which
would assist in connecting Central Oregon with major airline hubs out of state. Although not
directly tied to job creation, nonetheless the use of funds is considered supportive of economic
development.
Fund 105 shall not be used for investment purposes or to cover the start-up costs of a new
business venture.
Criteria
For purposes of this resolution, "relocation" means the move of an existing business from
outside of Deschutes County to Deschutes County.
2. Business "retention" means the keeping a business in Deschutes County that has
verifiable, bona fide plans to move to an area outside of Deschutes County and to take the
jobs that are currently provided by that business in Deschutes County to that area outside
of the County.
3. Business "expansion" means the verifiable, bona fide plans of an existing business in
Deschutes County to expand its operation in such a way that the result is the creation of
regular, full-time jobs that did not exist prior to the expansion.
4. For purposes of Fund 105, relocation or retention expenses include a business' costs of
moving equipment, furnishings and personal business property to or within Deschutes
County, but shall not include the costs of moving the personal household goods of any
employee or potential employee to or within Deschutes County. Relocation expenses
may also include: 1. short-term rent relief in a business' new location; and 2. the costs
associated with the recruitment of new staff, including, but not limited to, advertising or
travel allowances.
5. For purposes of Fund 105, expansion expenses include a business' costs of building or
leasing new space necessary to provide for newly created jobs, the lease or purchase of
new equipment or personal business property necessary to accommodate newly created
jobs, and/or the costs associated with recruitment or training of new staff.
6. The Board of Commissioners may, in its sole discretion, approve using Fund 105 to
participate in an airline revenue guarantee programs associated with the establishment of
commercial passenger airline service which would connect Central Oregon to one or
more major airline hubs. Use of funds for an airline revenue guarantee program are
indirectly tied to job creation and retention, and may take the form of a grant.
Page 3 of 4 Resolution No. 2013-097
7. The Board of Commissioners may, in its sole discretion, approve other uses of Fund 105
if they are consistent with the uses listed above.
Procedure
Deschutes County contracts with Economic Development for Central Oregon (EDCO)
for economic development strategic planning, counsel and support. EDCO is engaged
directly in the recruitment of new traded -sector businesses to the County.
2. All requests for disbursements from the Economic Development fund shall be made by
Deschutes County pursuant to a written request to the County by EDCO. All such
requests shall conform to the criteria above.
EDCO shall recommend to the Board of Commissioners whether a disbursement from
Fund 105 will be structured as a loan or as a forgivable loan. The Board of
Commissioners shall, in its sole discretion, determine whether a disbursement from Fund
105 will be structured as a loan or as a forgivable loan. In all cases, disbursements from
the fund shall be tied directly to the creation or retention of jobs. For forgivable loans, all
agreements between EDCO/County and the recipient business shall include a "clawback"
provision requiring the repayment of some or the entire loan for the failure to create and
maintain an agreed-upon number of jobs by an agreed-upon date.
4. A forgivable loan shall generally not exceed an amount equivalent to $2,000 per newly
created job. Deschutes County reserves the right to waive this limit in its sole discretion
after considering EDCO's recommendation.
5. EDCO shall be responsible for tracking the number of jobs created and maintained
pursuant to a loan or forgivable loan and for reporting to Deschutes County not less than
semi-annually on the performance of loan recipients.
6. Interest rates on low-interest loans shall be determined by Deschutes County in
consultation with EDCO. Loan administration and collection shall be the responsibility
of Deschutes County, which reserves the right to subcontract such responsibility to a third
party.
7. The Board of Commissioners shall approve the written Economic Development Loan
Agreement for companies receiving funds from Fund 105.
Page 4 of 4 Resolution No. 2013-097